Help Your Kids Buy a Home Early and Build Wealth - The Die With Zero Approach

For young adults today, buying a home in Texas feels tougher than ever. Home prices remain high, mortgage rates are elevated, and the cost of living keeps rising. According to a 2024 NBC News report, nearly 50% of parents are financially supporting adult children, often to help with housing. But when should that help come—and how can it have the most impact?

This is where the philosophy of Die With Zero by Bill Perkins comes in. This bestselling book, praised by financial experts and featured on platforms like CNBC and MarketWatch, challenges the conventional wisdom of waiting to pass wealth through inheritance. Instead, Perkins urges families to provide support earlier—when it can create the most meaningful, life-changing results.

When it comes to homebuying in Texas, that means helping while your kids are young enough to truly benefit from it.

What Die With Zero Teaches About Timing Your Gifts

This section could also highlight how the book explicitly criticizes waiting until death to transfer wealth. Die With Zero emphasizes early, intentional gifting over accidental inheritances, noting that delaying help out of fear of running out of money often leads to suboptimal impact. These points reinforce the message that timing matters when supporting children with major milestones like homebuying.

At its core, Die With Zero emphasizes that money should be used as a tool to create peak experiences, security, and fulfillment. Perkins argues that most people leave inheritances too late in life—when their children are already approaching retirement themselves. By helping your kids in their late 20s or 30s, you give them a chance to:

• Build home equity when it matters most
• Escape the rent trap and rising housing costs
• Enjoy stability as they raise families or pursue other life goals

Imagine the difference between giving a $50,000 gift at age 30 versus age 60. At 30, it might be the key to buying a first home. At 60, it’s often too late to change life’s course. That’s the power of early, intentional generosity.

Perkins also cautions against relying on inheritance as the main way to support your children. He highlights that most people delay giving out of fear of running out of money themselves, but this often means they miss the window when their gift could have the greatest impact. Early gifts provide not just financial support but meaningful opportunities to change your child’s future when it counts the most.

One striking example from the book is Perkins’ decision to give 90% of his stepson’s intended inheritance early, so he could buy a house when it truly mattered. Another is the story of a woman who reflected that receiving money at age 30 would have allowed her to buy a home and raise her children in greater stability — instead, she inherited at 49, long after that opportunity had passed.

Smart Ways to Help: Gifting, Co-Borrowing, and More

Helping your child buy a home in Texas isn’t just about writing a check—it’s about structuring that support in ways that truly open doors. From down payment gifts to co-borrowing, parents have several options to help their kids navigate today’s challenging housing market.

Gifting Funds for Down Payment or Costs

Here’s what parents need to know about loan-specific rules and how gifted funds can be applied in different mortgage scenarios:

• Conventional Loans: Gift funds can cover some or all of the down payment and closing costs. If the down payment is 20% or more, the full amount can come from a gift. If it’s below 20% and for a multi-unit property, lenders may require the buyer to contribute some of their own funds. Importantly, if your child is buying a single-family home (which most first-time buyers in Texas do), lenders generally don’t care whether the down payment is from a gift—they just want proper documentation.
• FHA Loans: The entire down payment can come from a gift as long as the funds are from an approved source like a parent or close relative. Lenders generally don’t require any of your child’s own funds for single-family homes—just proper documentation and a gift letter.
• VA Loans: While no down payment is typically required, gift funds can help with closing costs or earnest money. Lenders are flexible about the use of gift funds as long as documentation is provided.

Co-Borrowing: Boosting Buying Power

In today’s high-rate environment, many young buyers struggle with debt-to-income (DTI) limits. Adding a parent as a co-borrower can help:

• Improve DTI ratios — The combined income of the parent and child makes the mortgage look more affordable to the lender, helping the application get approved.
• Qualify for better loan terms — With stronger finances on paper, the loan may come with better interest rates or lower fees.
• Access homes that would otherwise be out of reach — This can make the difference between qualifying for a modest condo or a single-family home in Texas in a good school district.

Co-borrowing creates shared responsibility, but it can be temporary—many families later refinance to remove the parent once the child’s financial footing is stronger. It’s important to understand that co-borrowing in these cases doesn’t mean the parent has to make the payments. The primary borrower—the child—can and usually does make 100% of the mortgage payments. The parent serves more as a guarantor or backstop, strengthening the loan application without needing to contribute to the monthly costs unless necessary.

Additional Insights From Die With Zero to Strengthen Your Homebuying Strategy

Beyond urging early financial support, Die With Zero dives deep into the emotional and experiential value of helping loved ones while you’re alive to see the benefits. Perkins emphasizes that money should fuel memories, security, and meaningful milestones, not simply accumulate for an eventual inheritance that may arrive too late to matter.

The Experience Dividend

Perkins introduces the concept of the “experience dividend”—the idea that giving financial help while your children are younger creates compounding returns specifically through major milestones like buying a home. Helping your child buy a home at age 30 means they can build a family, engage with their community, and grow their wealth in a way that would be impossible if they waited another 20 years. The stability of homeownership is one of the clearest examples of how the experience dividend pays off.

Avoiding the Trap of Over-Saving

A key lesson from the book is that over-saving out of fear deprives both the giver and receiver of joy and opportunity. Perkins notes that many parents accumulate wealth far beyond what they need, missing their chance to make a difference during their children’s most impactful years. This is especially true when it comes to helping with a home purchase—a thoughtful plan that accounts for your own financial needs can help you avoid this trap while providing support at the moment it matters most.

Encouraging Smarter Risk-Taking

When parents provide early financial assistance—especially for a major purchase like a home—it allows children to take smarter risks in their careers or personal lives. For instance, owning a home in Texas can give your child the confidence to start a small business, return to school, or pursue a job they love rather than taking a stable, low-paying job that makes more money in the short term but way less money in the long term. Homeownership serves as a critical foundation that makes these smart risks possible.

A Real-Life Reflection: Homebuying and Timing

Perkins shares the regret of one woman who inherited money at 49. She said if she had received it at 30, she could have bought a house and given her children a better childhood. This story underscores how timing shapes outcomes—and why giving when your children can truly use the help is so powerful.

Crafting a Family Giving Plan

Die With Zero encourages readers to create a giving timeline—a thoughtful plan for how and when to provide support. This could include:

• Discussing shared goals with your children (such as homeownership in Texas)
• Deciding on an age range where help would have the greatest impact
• Aligning your plan with your financial advisor’s guidance so you balance generosity with your own future security

By aligning your giving with your values and your children’s life stages, you ensure your wealth serves a real purpose rather than sitting unused.

Final Thoughts: Plan Early, Act Intentionally

Homeownership in Texas comes with challenges, but there are real solutions. Whether it’s a down payment gift, co-borrowing, or both, the key is early, thoughtful action. At LendFriend Mortgage, we guide families through these decisions every day. Let’s create a plan that helps your child achieve homeownership in Texas when it counts. Call us at 512.881.5099 or connect with us online.